For socially and environmentally responsible investors leery of
putting more money into a still-lagging American economy, international
mutual funds focusing on investments in green companies abroad are good
options to help minimize risk while at the same time expanding
one's investment horizons. And today ethical investors have more
choices than ever to do well by doing good with overseas mutual funds.

The mutual fund industry was built on the principle that
diversification is the hallmark of prudent investing. But by pouring all
investment dollars into domestic funds, people are not only missing
opportunities worldwide but are also subjecting their money to the ups
and downs of the U.S. economy. Going international adds valuable
diversity.

World Values

Long a leader in domestic socially responsible investing (SRI),
Calvert Mutual Funds launched its World Values International Equity Fund
in 1992. Since that time, the multinational fund has boasted an average
annual return greater than four percent--not bad, considering many
domestic funds are in the loss column over that span. Calvert, founded
on the principle that corporations adhering to socially responsible
business practices will succeed in the long run, makes sure all of its
holdings--domestic and international--meet or exceed strict
environmental, labor and consumer safety criteria.

"By investing both domestically and internationally, investors
can lower their risk exposure and increase their growth potential in
being exposed to a much broader economy," says Calvert's
Melinda Lovins. "Also, international stocks enjoy the benefit of a
valuation discount to the U.S. market, and hence are likely to enhance
return"

To date, half of the investments in Calvert's World Values
Fund are in British and Japanese companies. But the fund also has large
holdings in France, Germany, Switzerland, Holland and Australia.

Another leader on the domestic SRI front, Citizens Funds, has
offered an international option, the Global Equity Fund, for the last
decade. Global Equity includes green holdings throughout Europe, Asia
and beyond. Both at home and abroad, Citizens screens out any potential
holdings if they engage in the production of alcohol, tobacco, weapons,
or nuclear power or if they do not have an environmentally friendly track record. Holdings include UBS (Germany), Nokia Corporation
(Finland), Komatsu (Japan), and Zurich Financial Services (Switzerland).

Canadian SRI fund provider Meritas now offers an International
Equity Fund, which invests primarily in large capitalization companies
based in Europe, Australia and the Far East. Less than 20 percent of the
company's fund is invested emerging markets so as to mitigate
downside risk.

"International equities are a good part of a well-balanced
portfolio," says Meritas CEO Gary Hawton. "Historically,
international markets have performed as well if not better than Canadian
and U.S. markets."

Portfolio 21, a no-load (no sales commission) mutual fund run by
Progressive Investment Management of Portland, Oregon, invests in
foreign companies based on commitment to the environment. Currently 70
percent of the fund's portfolio consists of companies outside of
the United States, including Sweden, Denmark, Norway, Finland, Germany,
Switzerland and England.

"When we first began researching companies for inclusion in
Portfolio 21, we thought that it was going to be a domestic stock
fund," reports Portfolio 21 chairperson and co-founder Carsten
Henningsen. "We soon learned, after reviewing over 2,000 companies
worldwide, that there are not enough companies in the U.S. implementing
sustainability strategies. So the fund became global."

New Risks

Investors should be aware that putting their money into foreign
markets comes with risks not found when investing in U.S. securities
alone. If you buy securities in another country's currency, the
transaction is dependent upon currency exchange rates, which can have a
significant effect on an investor's return. Other risks may include
political instability, high taxes and other factors.

But despite these risks, individual investors looking to protect
themselves through diversification should consider putting some of their
hard-earned dough into mutual funds focusing on stable international
markets. And with the help of trusted SRI money managers from these
firms, there is no need to lose any sleep while helping the global
economy move in a sustainable direction. CONTACT: Calvert World Values
International Equity Fund, (800)368-2748, www.
calvertgroup.com/funds_profile926.html; Citizens Global Equity Fund,
(800)223-7010, www.citizensfunds.com/
individual/products/globalequitylhnd.asp; Meritas International Equity
Fund, (866)MERITAS, www.meritas.ca/funds/ MSE1084_5.shtml; Portfolio 21,
(877) 351-4115 ext. 21, www.portfolio21.com.

RODDY SCHEER likes a broad-based international portfolio.

COPYRIGHT 2004 Earth Action Network, Inc.
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